LONDON, March 23 (Reuters) - The dollar continued to sag on
Monday as risk appetite improved on a U.S. plan to remove toxic
assets from bank balance sheets after details of the scheme were
revealed.

The Federal Reserve's plan to purchase longer-term
Treasuries, which was announced last week, also continued to
weigh on the greenback on concerns that the policy could lead to
an oversupply in the world's main reserve currency.

Stock markets around Asia rose and European bourses opened
higher as investors eyed plans by Treasury Secretary Timothy
Geithner to purge U.S. banks of "toxic" assets.

Geithner is set to speak at 1245 GMT but a U.S. official
gave details of the plan beforehand, saying the government would
put in $75 billion to $100 billion from its bailout fund to
partner with private investors and buy troubled assets at the
heart of the financial crisis. [ID:nWEQ000809] [ID:nSP424881]

"Stocks are opening up so risk appetite is on the up, it
seems Geithner has managed to instill a positive note in terms
of the broad market this morning," said Rabobank strategist
Jeremy Stretch.

"However, we need to hesitate because there are still some
gaps in the details...but for now markets are buying into the
risk recovery story...and that's a short-term negative for the
dollar.

The dollar fell against a basket of currencies .DXY to
83.3, with investors continuing to favour currencies whose
central banks had interest rates above zero and look unlikely
use quantitative easing to get their economies moving, such as
the euro, Australian dollar and Norwegian crown.

However, the pound also got a lift early on Monday due to
the dollar's broader weakness.

The yen also slipped, falling to its lowest in five months
versus the euro, and dropping more than 1 percent against
higher-yielding currencies.

The euro <EUR=> rose 0.4 percent to $1.3644, after hitting a
2-1/2 month high at $1.3739 on EBS last week, while the pound
GBP gained 0.77 percent to $1.4578. The Aussie dollar <AUD=>
was the biggest gainer against the U.S. currency, up 1.54
percent at $0.6971, having hit a 2-1/2 month high of $0.7003.

Against the yen, the euro rose 1 percent to 131.54 yen
<EURJPY=R>. Earlier, it hit its highest since late October at
131.99 yen. Japan's markets were shut on Friday for a national
holiday.

The yen's broad slide lifted the Australian dollar to a
2-1/2 month high at 67.29 yen <AUDJPY=R> and the New Zealand
dollar up a similar amount to 54.51 yen, having also hit 2-1/2
months highs earlier.

ECB WARY OF ZERO RATES

European Central Bank chief Jean-Claude Trichet signalled
that the central bank remained wary of interest rates falling to
zero in a newspaper interview published on Monday, in contrast
with the U.S. and Japan, where rates are already almost zero.
[ID:nLM557188]

Trichet said the ECB could cut rates further, from a record
low of 1.5 percent, but there were drawbacks with policy rates
at zero and the central bank did not think it would be
appropriate.

The ECB has become increasingly isolated among major central
banks as it has not moved beyond interest rate cuts to forms of
quantitative easing to boost the recession-hit region.

The Bank of England has already begun buying government
bonds to pump money into the system and the Bank of Japan last
week raised the amount of government bonds it plans to buy.

The Fed's decision last week saw the dollar notch up its
steepest weekly fall since 1985 against the basket of
currencies.

"The question is whether the QE measures announced by the
Fed last week and the toxic asset plan to be revealed today will
be perceived by markets as having a significant chance of
success," Barclays Capital strategists said in a note.

The Fed's move into QE is targeted at lowering all rates to
avert deflation and stimulate the economy. It is also aimed at
making it less profitable to hold cash and Treasuries,
pressuring investors to put money into riskier but
higher-yielding assets such as corporate bonds.

The U.S. Treasury will auction close to $100 billion of new
Treasuries this week.

"This will be the first test of the Fed's ability to keep
Treasury prices supported, against a backdrop of rising
supply... For the dollar, the level of participation by foreign
investors, as reflected in the indirect bid, will be of
particular interest," Barclays said.
The dollar firmed 0.4 percent to 96.25 yen <JPY=>, but was
still well down from a four-month high of 99.69 hit earlier in
March. It dropped to a one-month low of 93.55 last week.
(Reporting by Kirsten Donovan; Editing by Toby Chopra)

Thomson
Reuters journalists are subject to an Editorial Handbook which requires
fair presentation and disclosure of relevant interests.

Forex Trading News

Forex Research

Daily Forex Market NewsForex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
here.

Forex NewsReal-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."

Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.

Are you
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.

Forex Forum

The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.

Forex News

The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.

Currency Trading

Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.

Forex Brokers

The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.

Forex Trading

Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.

FX Trading

Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.

Forex Blog

Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.

WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.